Fielders will make more errors once they get below 100% - it can be pretty significant by the time you get to 90%. But I don't really see much drop-off in hitting when you get into the mid-90s. So I might play my RF/LF/1B guys down a little lower.
I try not to get my SPs below 98% or so, but that's just because I want them at 100% for the playoffs and if they get down too low, they might not recover. I set most of my relievers to 80% autorest, but again, if you have a guy who pitches at 81, rests, pitches at 81, rests, etc.. the results won't be as good.
I used to belong to the "no closer" school as well. In "real" baseball, it makes sense to put your best reliever into the highest leverage situation. That might be 2 on, 1 out in the 7th inning. But in sim baseball you can't control the leverage that your relievers are used for. You might have a setup B in a tight spot in the 6th inning. So I've started using a closer on the assumption that on average, the highest leverage situations will be in the 9th inning.
Sometimes my closer won't be my best reliever, but he'll be close. I want very specific things from my closer - low HR9 and low walks. I don't mind if he gives up a hit or two as long as he doesn't make a huge mess. Think Mike Williams or Hal Haid. I also want them to be somewhere between 45-60 innings. If I'm doing a theme league and the best relievers available don't fit that criteria, then my setup A might actually be a "better" pitcher than my closer.